See the format for the financial statements after the transactions.

The Association for Animal Care (AAC), an animal care shelter, was recently established. During its first year of operations it engaged in the following transactions and events:

AAC received a $10,000,000 endowment contribution, all in stocks and bonds. The endowment was permanently restricted.

AAC received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in unrestricted contributions.

AAC acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years.

AAC recognized depreciation on the furniture, fixtures, and equipment, purchased earlier in the year.

AAC spent $2,000,000 on educational programs. Remember to release the restriction.

AAC earned $300,000 in interest and dividends on its endowment investments.

By year-end the value of AACs investments had appreciated by $600,000.

AAC incurred $1,300,000 in administrative expenses.

AAC received a pledge of $4,500,000, to be fulfilled in three annual installments of $1,500,000 beginning in one year. AAC determined that a discount rate of 6% was appropriate. Remember that the present value needs to be recorded.

The following formats should be used for the financial statements for problem B.

The Association for Animal Care Statement of Activities For the Year Ending 20x1
	Unrestricted	Temporarily Restricted	Permanently Restricted	Total
Revenues
Contributions
Investment Income
Total Revenues
Expenses
Programs (education)
Administration (including depreciation)
Total Expenses
Excess of Revenue over Expenses
Net Assets Released from Restriction
Increase in Net Assets

The Association for Animal Care Statement of Financial Position (Balance Sheet) Year Ended 20x1
Assets
Cash
Pledges Receivable
Investments
Furniture, Fixtures and Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities (note: there are no liabilities)		0
Net Assets
Unrestricted
Temporarily Restricted
Permanently Restricted
Total Net Assets